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Staples/PSI Computer Take Back

NAHMMA Conference

September 23, 2005 Tacoma WA

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PSI ElectronicsProjects

National Electronics Product Stewardship Initiative (NEPSI)

Model state electronics legislation

“Guide to Purchasing Environmentally Preferable Computers”

Pilot computer take back with Staples, Inc.

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Context

• NEPSI dialogue (2+ years)• Financing system options

– Advanced recycling fee (ARF)– Partial cost internalization (PCI)– Hybrid (ARF PCI)

• Gov’t cost under PCI: collection, transportation to consolidation point

• No retailer participation in NEPSI

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Pilot Goals & Objectives

Share responsibility for recycling products that Staples sells.

Create a sustainable business model for long-term electronics collection and recycling.

Test reverse distribution for collecting electronics.

Measure cost effectiveness, logistical efficiencies, and customer response to the designed collection system.

Determine if and how program could be rolled out nationwide.

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Why did Staples Initiate Project?

• Fit with business model to provide collection service for products they sell:– Toner cartridges– Rechargeable batteries– Cell phones– Computer equipment

• Customer service/business opportunity

• Distinguish Staples brand/loyalty

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Pilot Project Partnership

• Staples– Covered project design costs.– Covered collection, transportation, and

promotion costs.

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PSI Role in Pilot

Designed pilot project

Tracked implementation

Assisted in data collection, analysis, and reporting

Evaluated pilot

Made recommendations for national program expansion

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Pilot Project Partnership

• U.S. EPA– Innovations grant to PSI – covered

implementation costs– Part of eCycling Project– Promotion/publicity

• Envirocycle– Recycler– Charged below-market processing cost

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Pilot Project Partnership

Apple

Brother

Dell

Epson

HP

Intel Lexmark Panasonic Sharp Sony

* Signed MOU with Staples

* Paid for recycling costs – their product and portion of non-participants

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Pilot Project Partnership

• State environmental agencies– Connecticut – Maine – Massachusetts – New Hampshire– Rhode Island

• Local government agencies

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The Pilot Project Overview

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Program Design

27 retail stores in 5 New England states14 commercial clients in 3 New England statesMay 29 - July 11, 2004 (6 weeks) Accepted electronics are computers (including all components), printers, scanners, fax machines and desktop copiersRecycling free to customers Minimum publicity – ramp up over time

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1. Home Customer2. Retail Store3. Distribution Center (CT)4. Envirocycle (PA)

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Retail Collection

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Retail Collection

Customers bring used electronics to one of 27 stores in pilot area

Customers place electronics into gaylord box and fill out data form

Electronics treated as returned productPackaged and backhauled on Staples trucks to DC and then to recycler

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1. Corporate Client2. Fulfillment Center (CT)3. Recycler (PA)

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2.

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Commercial Client Collection

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Commercial Client Collection

14 businesses selected to participateLarge and small

Hi-tech users and those not technology driven

Willing to test service

Electronics recycling service ordered with other purchases (no charge for recycling)

Electronics picked up when delivery was made or special collection – scheduled pickups

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Project Results

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Collection Summary

• Number of units: 5,257• Pounds: 115,028• Recycling cost: $8,520• Handling/collection (retail) cost: $1,870• Transportation (retail): $11,355• Collection/transportation (commercial)

cost: $1,116• Promotion, staff training, admin: $7,030

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Lessons Learned

• Program was logistically feasible• Program was successful• Staples’ customers are willing to pay for

computer recycling (NOTE: Many others will not!)• Many computer brands returned from non-

participating companies• Retail collections model• Commercial collections unique• Expect business equipment at retail collection

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Recommendations

• Staples pilot as part of comprehensive collection/recycling infrastructure.

• Treat used computers like a return.• Charge a recycling fee until national financing

system developed – size it to account for full recycling cost (no mfr reliance).

• Enhance data security to allow for reuse.• Seek standardized regulatory requirements.• Phase collections – cleanout/maintenance.• Phase program promotion.

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Ramifications of Staples Project

• Shows viability to use existing retail infrastructure for collections.

• Part of comprehensive system.• Reduces pressure on government to be

sole collection point.• Added convenience to consumers.• More recycling potential.• Lower system cost.

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Ramifications of Staples Project

• Office Depot/HP pilot in northwest and nationally.

• Good Guys northwest pilot collection.

• Staples northwest store relaunch.

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Next Steps

Staples has interest in expanding program.Other retailer actions expected.EPA/PSI conference call – October 20???

Lessons learned from eCycling pilots.Opportunities for other retailers.

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Contact

Scott CasselPSI Executive Director

617-236-4855

scott@productstewardship.us

Report available at:

www.productstewardship.us